Course Content
Measure
Collect data to establish baselines, understand current performance, and quantify the problem. For example, measuring the average turnaround time for policy renewals.
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Improve
Develop and implement solutions to address root causes. For example, streamlining workflows or introducing new digital tools to reduce manual errors.
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Control
Put controls in place to sustain improvements, such as regular monitoring, updated procedures, or dashboards for ongoing performance tracking.
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Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control)

Why Data needs to be collected

The key output of the Measure phase is to have a good understanding of the current process performance level with the figures such as Sigma level and some other process-specific metrics

 

Types of Data

Data can be grouped into discrete data or continuous data:

Discrete Data

Discrete data is categorical in nature. It falls into 3 categories: ordinal, nominal or binary

Ordinal Data – The numbers/symbols are qualitative in nature, but they are also ranked. Central tendencies with ordinal data are measured by either the mode or the median. For example, student test scores can be expressed in ordinal fashion via grades A, B, C, D and F

Nominal Data – The numbers/symbols are assigned to each category but they don’t provide any information if the data is better or worst than other data in the listing. For example, 1. is assigned to “product that is produced in Thailand” for a company, and 2. is assigned to “product that is produced in Malaysia”; the no, of 1s and 2s produced by the company does not tell if one of them is better than the other.

Binary Data – The numbers/symbols assigned to the data has only 2 states. In the student test results example, a Pass/ Fail can be assigned to each student’s result

Note: Discrete data are best displayed via Pareto chart, Pie chart and Bar Chart

Continuous Data

Continuous data is quantitative data and is measured in units. For example, the time of day is measured in hours.

Note: 

  • Almost all continuous data can be converted into percentage
  • Continuous data is best visualized in graph using Histogram and box plots.

 

Choosing between Discrete and Continuous data

Discrete or Continuous data may be chosen depending on the purpose of measurements. In the nutshell, Discrete data is easier to collect, but it provides less information compare to the Continuous data.

The Continuous data is typically more time-consuming to collect than Discrete data unless teams have access to automated or computerized data collection. 

Where possible Continuous data would be preferred over Discrete data as:

  • It provides more information than discrete data
  • It is more precise than discrete data
  • It reduces the variation and errors inherent in estimation and rounding (that happens in some Discrete data)